Faraday Future FFZERO1 Concept – Prior to being set to flames by Jalopnik

Leave it to Jalopnik to further expose the claims that Faraday Future is failing (much more miserably than previously reported), complete with the photo-shopped image of a Faraday concept car in flames (see that shot below in a tweet-back response from Faraday on what they think of the story)

The article goes into extensive detail about exactly where the issues lie and where the company stands.

Several contractors, suppliers, current employees, previous employees, prospective employees, and others have opened up to Jalopnik (with the publication’s promise of anonymity) to divulge the current situation as it stands. Below are some notable takeaways:

State officials in Nevada finding flaws in the CEO’s net worth, and the company’s financial situation

One notable story involves Faraday’s seat supplier, Futuris. Faraday owes the company $10 million ($7 million is over 30 days late). The case was mysteriously dismissed last week (with neither company commenting), but this is only one of multiple suppliers that Faraday owes millions of dollars. Sources say that many companies on the list have ceased to provide any more business to Faraday.

Update/Editor’s Note (hat tip to sven): Faraday Future for its part has responded back to Jalopnik’s article; unfortunately it did so with platitudes over stating that it was now paying its bills.

Media pessimism is standard fare for disruptors. Deliberate negative info from press and competitors is the welcomed risk of innovation. pic.twitter.com/1lgtlKjgh1

Faraday Future employees reportedly designed and built LeEco’s electric car, and Faraday incurred the R&D expenses, however, Faraday was never compensated and employees were never paid for it. The LeEco and Faraday situation is very confusing. They have the same parent company, but aren’t the same company, and are strategically “together”, yet not “together” etc. Just more mess in the whole situation.

The land that LeEco acquired in Santa Clara, for the project, was purchased with loan money that was only approved due to Faraday being a guarantor on the loan. This was a huge added financial liability for Faraday, that several top execs at the company argued against. Regardless, it was approved.

No working factory … no work being done on the factory itself … suppliers owed money and refusing to continue the partnership … the state of Nevada finding discrepancies … a myriad of teasers that don’t amount to much (including the upside black bowl above) … a “leader” refusing to answer questions and suddenly claiming he’s only an investor … no actual CEO … ahh the list goes on and on and on …

Do check out Jalopnik’s full report and decide for yourself on Faraday Future’s…future.

So it all boils down to one problem: the extremely deep pockets just aren’t there. That’s too bad because those are among the most important prerequisites of starting up a car company.

Apple and Google appear to have bowed out of actually producing cars and maybe with good reason but they were actually excellent candidates for long term success in the car game having the financial wherewithal to make it through the valley of death.

“So it all boils down to one problem: the extremely deep pockets just aren’t there.”

Oh no, there were a great number of big problems evident in FF’s claims and announced plans from the start; problems that at least a few of us noticed even in the first FF press release reported on InsideEVs.

We should expect high-tech startups to make optimistic claims, as part of promoting the company and trying to attract investor money.

But we should not expect to see or hear plans announced which are obviously impossible to realize, or claims and plans which make whoever is in charge look absolutely clueless about the realities of building and selling mass produced cars.

I hope that at least some of those who repeatedly disputed the assertions of those of us who were sounding the alarm about FF, will take this as a learning experience, and exercise more skepticism in the future about claims from a startup which are so obviously extremely unlikely or even impossible.

Good find, had not seen that…will add that into the story for some context. Would have been nice if the retort would have been “hey we are paying all our bills now”, but take what you can get I suppose.

Maybe they can sell their “race car” to the Air Force for target practice. Does the A10 fire incendiary rounds? It would be better if it actually had a Li-ion battery in that case. Admit it, that would make a great YouTube video.